US to ensure steady oil supply for India

US is working towards stabilising the global energy markets and maintaining steady oil supplies to allies.

Indian refineries are prepared to meet national demand for petrol, diesel and other petroleum products, the people said.

The US decision not to extend waivers from sanctions on purchases of Iran’s oil is not intended to hurt India and Washington is working towards stabilising the global energy markets and maintaining steady oil supplies to friends and partners.

The issue of ending the sanction waivers and its fallout, including alternative energy supplies, figured in talks between Indian officials and visiting US principal deputy assistant secretary of state for South and Central Asia Alice Wells here on Tuesday.

The Trump administration’s decision is not aimed at hurting friends and partners and the US is in touch with key energy producers including the United Arab Emirates and Saudi Arabia to ensure stable oil supplies, people familiar with the matter said. ET has learnt that the US is making all efforts to stabilise the global oil markets and enable the smooth supply of oil to allies including India, Japan, South Korea and Turkey. The US has been working with countries that received a waiver last November to reduce oil imports from Iran to zero, one person indicated. The Trump administration alleges that oil revenue contributes to Iran’s military capabilities to fund “proxy groups.” Ending the waivers is aimed at controlling Iranian proxy wars and its ability to support proxy groups in the region.

Experts who did not wished to be identified indicated to ET that the US that expects India to adhere to the request to halt Iranian oil imports in the backdrop of US efforts to crack down on terror infrastructure in Pakistan. India has a robust plan to ensure adequate supply of crude oil to refineries from May 2019 onwards, when the waiver ends, people in the know of the matter said. Additional supplies will come from other major oil producing countries. Indian refineries are prepared to meet national demand for petrol, diesel and other petroleum products, the people said.

“The government has noted the announcement by the US government to discontinue the Significant Reduction Exemption to all purchasers of crude oil from Iran. We are adequately prepared to deal with the impact of this decision. Government will continue to work with partner nations, including with the US, to find all possible ways to protect India’s energy and economic security interests,” an external affairs ministry spokesperson said.

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